ECON 219 Lecture Notes - Lecture 7: Monetary Base, Coase Theorem, Harold Demsetz

• School: McGill University
• Department: Economics
• Course: ECON 219
• Professor: Tom Velk

Document Summary

There is an annual ball with: x # of men = x # of women. Stable vs. unstable match: if man m and woman w are paired together, then at least one of the following is true: Stable match: there are no two people who prefer each other over their current partners. M prefers w over every other woman at the ball or, If m prefers another woman (w2) over w, it is certain that w2 prefers her partner over m. Unstable match: there are two+ people who prefer another person over their current partner. Galey-shapely algorithm: match between all the men and women can be found, this matching is always stable. If a man has been rejected, he proposes to his next preference (w2) If she prefers him over her current match a. b: continues until all the men are matched. Charlie proposes to rhea: frank proposes to kate, who also receives a proposal from mac.